This site has been dedicated to writing about Native American loan companies. That's the whole point of the site, to dig deep and get into the nuts and bolts of tribal lenders. Which companies have the better rates? Which company can actually loan a decent amount of money? All of these questions.
Today, let's step back a minute and compare the entirety of the tribal lending business community to a non-tribal lender named CashNetUSA. Why CashNetUSA and not one of the hundreds of other online loan companies? Well, for a few reasons. First, CashNetUSA is one of the largest internet loan companies in the country and one of the oldest dating back to 2004. The company also is based out of Chicago and so is this site.
The best reason to compare CashNetUSA to the Native American lenders is because it's going to shed some light on the nature of tribal loans. The problem that Native American lenders face is that they don't have a lot of recourse when customers walk away from their loan obligations and because of this the tribal lenders charge very high interest rates. So in one sense the comparison to CashNetUSA is not fair, because CashNet operates within the jurisdiction of the United States while the Native American lenders operate out of their own sovereign nations.
The problem is that a regular, everyday consumer doesn't care about those particular situations at all. Not a bit. They want a loan that has the amount of money they want and they want the loan to be completed quickly. Where and how the loan is originated from is all just background noise that doesn't affect the consumer. Let's look at some of the better tribal lenders and the interest rates they charge on their loans.
We'll start by comparing CashNetUSA with Mobiloans, which is one of the better Native American lenders. CashNetUSA allows for a customer to have an installment loan for $400 that requires six repayment dates (each of those dates each 30 days apart) and the total in finance charges would be roughly $243. Mobiloans will allow a customer to take out a Unfortunately for the same $400 and during the six repayment periods (each of which is only 14 days) and the six repayment amounts vary per each period. They go as following: $100, $105, $95, $95, $95, $95 which equals $585 in finance charges. Alright, so this is a pretty bad indictment against Mobiloans.
A customer can borrow double the same amount of money with either lender but that customer will pay more than double in finance charges with Mobiloans. And take note that the customer is paying double for less than half of the time allowed by CashNetUSA. The Mobiloans duration of loan is 84 days while the CashNetUSA loan time frame is 180 days. This is pretty brutal.
Basically, CashNetUSA is stomping the competition in Mobiloans, and remember that Mobiloans is one of the better tribal lenders. Unfortunately, the news for the tribal lenders don't get any better, things get even worse. CashNetUSA offers a number of online coupons that allow users to take either 25% or 50% off their finance charges for that particular loan. Usually the 50% off is for new customers and the 25% off is for a returning customer. I know, you would think it would be the other way around but it's not.
CashNetUSA is simply a better, cheaper, more allowing company to borrow from, if you can. And that's the crux of the issue right there. If tribal lending is so expensive then why does it exist at all? The answer is that Native American lenders are not very discriminating, and if you have a job they will give you a loan. CashNetUSA can't say that, they do a number of checks against you, including some state level checks that are snooping around to see if you have any defaulted or outstanding loans. If CashNetUSA spots anything like this then there goes that loan you were hoping for and whatever you were going to pay for with the money.
This is why the tribal loan firms stay in business and thrive, because they make loans to people who are working no matter what their financial histories are, whether that's late payments, outstanding debts, and often even bankruptcies don't stop Native American lenders. Now, it should be noted that probably about half of all tribal loan companies do make some provision about bankruptcies, either you can't have had one or it had to be a certain number of years ago. But there are plenty of tribal lenders that simply don't care, they just want to know that you are currently employed (and usually have been for at least six months) and that you are over 18 years of age. That's it, that is all they are looking for and once they confirm that information then you are getting the loan sent out to your checking account. That's the big difference.
Traditional banks simply don't lend money to anyone who needs it these days. More mainstream loan companies such as OneMain Financial and Springleaf are not going to lend to most people, probably just the top 20% of workers. Then there are companies like CashNetUSA who charge less than Native American lenders but who require more stringent checks on your credit history, your loan history, and in some states they see if you have paid past loans or have past due items. Then there are the average payday loan stores and the online payday loan gang, all of which will charge very high fees, plus they to will be doing some homework on you to see if you have loans still hanging out, unpaid or late.
Then we come to the tribal lenders. Yes they have high interest costs, but as a lender from a sovereign nation they are not required to check with any state entity. They don't care where you have been or who you have borrowed from. They don't care if you have another loan oustanding or a loan you didn't pay from three years ago. They care about the current situation right now, which is do you have a job, do you have a checking account, and are you 18 years old.
If the answer to all those is a "yes" then you are 99% ensured to be getting the loan. That's the big positive with Native American loans, it's all about who you are right now. There is no past that matters with them, and for a lot of people that means a whole lot.
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